CONSUMER CIBIL REPORT

As we know that one of the key parameters for any bank to evaluate a customer for the purpose of lending is CIBIL/ EXPERIAN/CRIF SCORE. Let us discuss about what is “CONSUMER CIBIL REPORT”, how to read it and what information this report provides.

CIBIL Report is generated on the basis of database maintained by CIBIL TRANSUNION Agency which gives information about an individual in terms of his borrowings like loan taken, loan start date, loan closure date, repayment tenure of the loan, whether there is any delay done in paying instalments (DPD’s), no of inquiries, nature of facility whether secured or unsecured, loan taken in individual or guarantor capacity and so on. We will here discuss major information provided by CIBIL in its report 

1)       Date of Generation of CIBIL Report: It is a very important factor. Never use any outdated CIBIL report. Always pull a fresh report as CIBIL has now started updating its data on daily basis

2)      CIBIL Report also provides basic details of the borrower like address, mobile number, KYC, email address etc.

3)      CIBIL SCORE: This is the most important factor to analyse the past repayment behaviour of any individual. This Score is generated on the basis of various analytics developed by CIBIL like repayment behaviour, types of facility availed, DPD’s overdue history, cash flows etc. CIBIL SCORE are either 0, -1,  or in the range of 1 to 5 or 300-900.

Ø  SCORE “-1”: It signifies that CIBIL do not have sufficient database available for the Borrower.

Ø  SCORE “0”: It signifies that CIBIL has database available for the individual but less than 6 months.

Ø  SCORE ranging from 1 to 5: It signifies that CIBIL has database but it’s not able to comment upon the borrower because certain other parameters which are required to generate the score is not available with CIBIL. 1 is considered as  worst score and 5 is considered as  best score 

Ø  SCORE ranging from 300-900: These are those borrowers whose database is available with the CIBIL and they are able to generate the Score. 300 being the worst score and is a cautious category and 900 being the best score for the purpose of evaluating a borrower.(Scoring factors are mentioned in the right hand side of the SCORE which give reasons for arriving at a particular score)

4)      Consolidated details of all the accounts like total sanctioned amount, balances, overdue, zero balance accounts, running accounts, number of enquiries done for the customer in past 24 months are provided before providing individual loan details so as to give a brief idea of overall accounts of the borrower

5)      Individual Account details are provided by the CIBIL in following manner

Ø  Member Name: Name of the bank which has given the loan

Ø  Type of loan: It mentions nature of facility taken like Property loan, business loans, housing loan, Credit Card, Car loan etc.

Ø  Last Payment date: This date denotes that latest last instalment has been paid by the borrower on this date

Ø  Reported and Certified: This date denotes that on this date CIBIL has certified the data provided by the Member bank

Ø  PMT HIST START: This date denotes that CIBIL has taken this as last date for the purpose of data updating

Ø  PMT HIST END: This date denotes that CIBIL has taken this as starting date for the purpose of data updating.

Ø  Account Number/ Account opened date/ Sanctioned amount/ Current Balance/ Overdue/ Repayment tenure/ Collateral Type : As the name itself suggest        

6)      Days Past Due/ Asset Classification: If there is any delay in repayment of the loan taken by the borrower then same can be tracked from Days past due. For example if for some loan Days past due is being shown as 35 days, it means that the borrower has delayed in repayment of instalments by 35 days from its due date of payment.

Various other terms are also used in CIBIL report which shows repayment behaviours of the borrower as mentioned below:

Ø  STD: Its full form is standard which means that no adverse behaviour is observed in the account and conduct of the account is satisfactory with the lender bank.

Ø  SMA: As per RBI guidelines Full form of SMA is “Special Mention account” which are further classified as SMA 0, SMA 1 or SMA 2 depending upon delay done by the borrower in repayment.

a)      SMA “0” - An account is classified as SMA-0, if it has delayed its obligation between 0-30 days from the due date.

b)      SMA “1” - An account is classified as SMA-1, if it has delayed its obligation between 30-60 days from the due date.

c)       SMA “2” - An account is classified as SMA-2, if it has delayed its obligation between 60-90 days from the due date.

Ø  NPA: Full form of NPA is “Non- Performing Asset. There can be one or more reasons for an account to be classified as NPA. One of the reason is if there is delay in payment of its obligation by more than 90 days, then account shall be classified as NPA.

Ø  SUB STD: Full form of SUBSTD is Sub- Standard which means that account has been classified as NPA for less than 12 months

Ø  DBT: Full form of DBT is Doubtful which means that account has been classified as NPA for more than 12 months

Ø  LOSS: Loss means those accounts which remained NPA for more than 3 years and bank has identified them as loss assets. 

7)      Enquiries: In last section of CIBIL Report it shows enquires made for the borrower by the bankers. Higher number of enquiries in recent period is not a good indicator which reflects borrower has approached multiple banks in same period for loan which also can be a sign of stress.

As it can be seen from above CIBIL report provides adequate information to identify a customer as good or bad  and to check whether there are any signs of stress are observed in borrower thereby preventing their exposure turning into a bad account.